CMBS

  • Multi variety

    Diverse German multifamily CMBS outcomes expected

    The German multifamily sector accounts for about 20% of all securitised assets in European CMBS. Deal performance in the sector has been mixed, with noteholders frequently facing extensions and sometimes losses.

    Geography is a highly significant factor in German multifamily CMBS, as property location is often a major driver in loan performance. Aside from a few notable exceptions, East German .......

    News Analysis 13 March 2012

  • Stale CMBS loans to improve

    The balance of stale US CMBS loans - loans in special servicing for longer than 24 months - has tripled over the past year. However, a new report from US CMBS & CRE analysts at Wells Fargo Securities suggests that the trend is likely reverse and that the balance of stale loans should improve over the next 12 months.

    At .......

    News 12 March 2012

  • CMBS loan payoffs bounce

    The percentage of US CMBS loans paying off on their balloon date posted their second highest reading since December 2008, according to Trepp's February payoff report. During the month, 61.6% of loans reaching their balloon date paid off.

    Only September 2011 had a better reading since the credit crisis began: that month the payoff level was 64.4%. February marks only .......

    News Round-up 12 March 2012

  • QUOKK 06-1 management structure revised

    A number of changes have been made to the management structure of the €560m Quokka Finance, a German multifamily CMBS. These include a change of property manager and borrower general partner.

    The original property manager, Krüger Immobilien, has been dissolved due to insolvency and its functions transferred to replacement property managers - Colonia, Pentaproperty, TAG and Hermes - to avoid .......

    News Round-up 12 March 2012

  • Servicer conflicts of interest scrutinised

    S&P says it is monitoring potential conflicts of interest that may arise between special servicers, their affiliates and/or parents - especially when a servicer has changed ownership. The agency notes that several market participants, including CMBS investors, have expressed concern over special servicers' exercising 'fair market value' purchase options and the practice of charging additional fees in connection with loan .......

    News Round-up 12 March 2012

  • Lease rollover risk scrutinised

    Near-term lease expiries appear to be a manageable risk for many of the five-year US CMBS loans maturing this year, according to CMBS strategists at Citi. However, lease expirations ramp up dramatically from 2015, with office expirations for example jumping to 19.7% that year from 11% in 2014.

    Citi research suggests that, in aggregate, leases on about 10% of occupied .......

    News 9 March 2012

  • Atlanta offices drive CMBS delinquencies

    Increasing difficulties for office properties, most notably in Atlanta, overshadowed what was otherwise a flat February for US CMBS delinquencies overall, according to Fitch's latest US CMBS Loan Delinquency Index results.

    CMBS late-pays fell by 2bp last month to 8.3% from 8.32% a month earlier. The decline was led by a large hotel loan that was brought current. However, office .......

    News Round-up 9 March 2012

  • Multifamily CMBS lags recovery

    The recovery being seen in the US apartment sector hasn't trickled down to multifamily CMBS, according to a new report from S&P. The rating agency notes that despite a solid recovery that includes a 5% annualised rise in apartment rents through 4Q11, delinquencies for multifamily CMBS are still near record highs.

    Although the delinquency rate had declined to 13.58% of .......

    News Round-up 9 March 2012

  • CMBS loan liquidations retreat

    The volume of CMBS conduit loans liquidated in February retreated sharply, falling by 43% from January's reading, according to Trepp. In fact, the February reading was the lowest total since November 2010.

    At US$893m, liquidations were about 32% below the 12-month moving average of US$1.31bn per month, Trepp says. Since the beginning of 2010, special servicers have been liquidating at .......

    News Round-up 8 March 2012

  • GRAND plan nears

    Substantial progress has been made in discussions between Deutsche Annington (DAIG) and the ad hoc noteholder group over restructuring the GRAND CMBS (SCI passim). A plan to extend the transaction through a solvent scheme of arrangement is "near finality" and is expected to be proposed to all noteholders in the coming weeks.

    DAIG reportedly plans to refinance €500m of the .......

    News 8 March 2012

  • MBS vet becomes REIT president

    Byron Boston has been promoted to president and appointed to the board of directors at Dynex Capital. He joined Dynex four years ago as cio and will retain those duties alongside his new role.

    Boston has three decades of experience in the industry, having begun as a banker and MBS trader for Chemical Bank, Credit Suisse First Boston and Lehman Brothers. .......

    Job Swaps 6 March 2012

  • Real estate debt head named

    John Feeney has joined Henderson Global Investors as head of real estate debt in its secured credit team. He will work with the firm's property business and fixed income team to drive business growth in real estate debt.

    Feeney has been involved in CRE since 2004. He was a co-founder of Bank of America's European and Asian real estate lending .......

    Job Swaps 5 March 2012

  • WOBA dispute settled

    Gagfah and the City of Dresden have agreed an amicable settlement to end the legal dispute over the WOBA loan securitised in Windermere IX and DECO 14 - Pan Europe 5. The settlement is subject to approval by the City Council of Dresden and clearance by the City's legal supervision authority, which is expected to be finalised by 15 March.

    News Round-up 5 March 2012

  • CMBS delinquency rate falls in February

    The Trepp delinquency rate for US CRE loans in CMBS fell by 15bp in February to 9.37%. The value of delinquent loans is now U$56.4bn.

    In February, the value of loans being resolved with losses was under US$1bn and, while significantly less than the US$1.6bn in January, contributed about 15bp of downward pressure on the delinquency rate. The rate was .......

    News Round-up 5 March 2012

  • Multifamily contradiction highlighted

    An apparent contradiction in US multifamily CMBS performance has emerged over the last few years, according to Fitch.

    "As an asset class, multifamily has been one of the fastest types of commercial property to bounce back from the effects of the 'Great Recession'. Occupancies have increased, rents have begun to increase and concessions such as free rent have decreased. Yet, .......

    News Round-up 5 March 2012

  • CRE vet joins board

    Arbor Realty Trust has appointed William Green to its board of directors as an independent member, effective immediately. He has 29 years of experience in CRE, including as co-founder and managing partner of Tannery Brook Partners and co-founder and managing member of Cazenovia Creek Investment Management.

    Green has previously served as member at Starwood Capital Group responsible for the debt .......

    Job Swaps 1 March 2012

  • Yield boost

    CMBS extension trades gaining traction

    US special servicer activity has risen over the past two months, resulting in approximately US$3.7bn newly-modified loans. With term extensions being the most common modification strategy, investors are increasingly looking to CMBS extension trades to boost yields.

    According to FTN Financial data, across the three largest special servicers, term extensions represent over 70% of LNR Partners' loan modification book and .......

    News Analysis 1 March 2012

  • 'Quiet' month ahead for Euro CMBS maturities

    Fitch says in its latest European CMBS bulletin that like February, March 2012 will be a quiet month for scheduled loan maturities.

    Only one loan is due to mature, The Zeloof Partnership, securitised in Victoria Funding (EMC-III) and serviced by Capita Asset Services (Ireland). The servicer has indicated that the borrower's intention is to repay the loan in full at .......

    News Round-up 1 March 2012

  • Euro CMBS trading up

    The European secondary CMBS market has been trading up recently. Investor demand is particularly focused on the top of the capital structure, although not necessarily only for top-quality deals, while BWIC activity has also been strong.

    "There has certainly been some activity in the market and it is trading up. That has been the trend for a while now, with .......

    Market Reports 28 February 2012

  • Time in special servicing on the rise

    US CMBS loans are spending more time in special servicing, according to a new report from Fitch.

    The number of months in special servicing has increased to 16.9 months on average as of year-end 2011 from 12.8 as of year-end 2010 and 9.02 as of year-end 2009. Fitch says the increase in time is due to several factors, including unprecedented .......

    News Round-up 24 February 2012

  • Kroll publishes multi-borrower criteria

    Kroll Bond Rating Agency (KBRA) has published its methodology for rating US CMBS multi-borrower transactions. It will typically be used for transactions with at least 30 loans that are secured by properties that are diverse relative to the geographic location, property type and sponsor.

    KBRA says it developed the criteria with several guiding principles, the most important of which was .......

    News Round-up 24 February 2012
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